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Improving the performance of District Heating Systems in Central and Eastern Europe Pilot projects Report on local working groups Republic of Serbia Horizon 2020 (H2020-EE-2017-PPI) Project N°784966 This project received co-funding from the German Federal Ministry of Economic Cooperation and Development. WP No.4 Pilot projects PROJECT INFORMATION Lead partner for the deliverable North-West Croatia Regional Energy Agency (REGEA) Document type report Dissemination level public Date of submission September 15, 2020 Author(s) Milica Mladenović, Goran Živković (VINČA) Stefanie Schaedlich, GIZ Reviewer(s) Magdalena Sperl, GIZ Marko Čavar, REGEA List of Abbreviations AT Austria CEE Central and Eastern Europe CoM Covenant of Mayors for Climate and Energy CZ Czech Republic DisComEx Dissemination, Communication and Exploitation DG Directorate-General of the European Commission DHS District Heating System EBRD European Bank for Reconstruction and Development EU European Union GHG Greenhouse Gas HR Croatia KPI Key Performance Indicator LV Latvia LWG Local Working Groups NGO Non-Governmental Organisation RES Renewable Energy Source(s) SI Slovenia SRB Serbia UKR Ukraine WP Work Package Deliverable N°4.2 Report on local working groups 2 WP No.4 Pilot projects Summary of the project The project “KeepWarm - Improving the performance of district heating systems in Eastern Europe” is funded under the EU Horizon 2020 programme. Its objective is to accelerate cost-effective investments in the modernisation of District Heating Systems (DHS) in Central and Eastern Europe (CEE). KeepWarm is most active in seven countries: Austria (AT), Croatia (HR), Czech Republic (CZ), Latvia (LV), Serbia (SRB), Slovenia (SI) and Ukraine (UKR). The project focuses on this region, and these particular countries, because in most cases DHSs are frequently still inefficient and for the most part overly reliant on fossil fuels (especially gas, coal or oil). The aim of this initiative, launched in April 2018, is to modernise DHSs around the whole region in a more sustainable manner. By improving system operations and promoting a switch to less-polluting sources, like renewable energy sources (RES), KeepWarm will contribute to reducing greenhouse gas (GHG) emissions. The eleven project partners strive to ensure that best practices for environmentally-friendlier heating and cooling will be taken up across Europe, replicating KeepWarm’s approach in other countries and regions, even beyond the end of the project in September 2020. Project objectives KeepWarm’s specific objectives are: • At least 450 relevant stakeholders with increased capacities on technical, organisational, financial and managerial aspects – includes 150 DHS operators; • At least 95 DHS operators are able to develop business plans and to identify the most suitable financial model for modernisation of their own DHS; • At least 23 business plans for the modernisation of DHSs have been developed and sources for investment have been identified; • DHS network retrofitting is addressed in at least 10 local energy plans and 7 regional or national strategies or plans; • At least 23,300 relevant stakeholders (directly) and 125,000 (indirectly) reached across Europe in order to replicate the project outputs in primary and secondary target regions and ensure the project’s impact; • Support EU policies and initiatives, such as the Covenant of Mayors for Climate and Energy (CoM) and DecarbHeat, by exploiting key lessons from KeepWarm activities and pilots to disseminate best practices across Europe. Deliverable N°4.2 Report on local working groups 3 WP No.4 Pilot projects KeepWarm consortium partners LOGO PARTNER NAME SHORT COUNTRY Deutsche Gesellschaft für internationale Zusammenarbeit GIZ Germany (GIZ) GmBH University of Zagreb Faculty of Mechanical Engineering and Naval UNIZAG FSB Croatia Architecture Landeskammer für Land- und LWK Austria Fortwirtschaft in Steiermark Regionalna Energetska Agencija REGEA Croatia Sjeverozapadne Hrvatske Jožef Stefan Institute Energy JSI Slovenia Efficiency Centre ICLEI European Secretariat GmbH ICLEI Europe Germany Teplarenske Sdruzeni Česke TSCR Czech Republic Republiky Biedriba Zemgales Regionala ZREA Latvia Energetikas Agentura Zavod Energetska Agencija za KSSENA Slovenia Savinjsko Salesko in Korosko LLC KT-Energy Consulting KT-Energy Ukraine Institut za Nuklearne Nauke Vinca VINCA Serbia Deliverable N°4.2 Report on local working groups 4 WP No.4 Pilot projects Content List of Abbreviations ........................................................................................................... 2 Summary of the project ...................................................................................................... 3 Project objectives ................................................................................................................ 3 KeepWarm consortium partners ........................................................................................ 4 Content ................................................................................................................................ 5 Executive summary ............................................................................................................. 6 Introduction ......................................................................................................................... 9 Local working group – meeting 1 ......................................................................................10 Local working group – meeting 2 ......................................................................................13 Local working group – meeting 3 ......................................................................................14 Local working group – meeting 4 ......................................................................................18 Local working group – meeting 5 ......................................................................................22 Local working group - meeting 6.......................................................................................25 Local working group - meeting 7.......................................................................................27 Local working group - meeting 8.......................................................................................30 Future activities of local working groups .........................................................................34 Deliverable N°4.2 Report on local working groups 5 WP No.4 Pilot projects Executive summary The switch from a fossil fuel and inefficient DH system to clean and renewable alternatives with low level of losses is a challenging task. Moreover, other competitive heating solutions in heating sector make it difficult for other heating alternatives, such as DH to compete. Besides DH systems often were not able to provide appropriate value of their services from technical, environmental, societal as well as economic perspective. In other words, DH systems are often in a difficult position due to many reasons. As a result, they often lack of ambitious plans and performing relevant activities such as development of feasibility studies, complicated public procurement procedures, evaluation of RES potential, successfully negotiation with both existing and future end-consumers, identification and application to both local/regional/national and EU funds (lack of investment strategy). On the other hand, they often lack work force and capacity to achieve ambitious plans due to lack of financial funds or know-how. To foster modernization of above-mentioned DHSs, the KeepWarm project focuses on modernization of pilot DH systems in 7 partner countries (Austria, Croatia, Czech Republic, Latvia, Slovenia, Serbia and Ukraine). Project partners committed to provide support to DHSs representatives throughout an interdisciplinary approach with the aim of achieving investments developed in previous activities of projects such as feasibility studies, business plans and selection of pilot DHSs. After identification of current state and barriers which hinder successful investments, the KeepWarm consortium organized local working groups in each country with the aim of providing tailor-made assistance to remove barriers. The goal of the local working groups was to include all relevant stakeholders, which can be identified through the stakeholder analysis, to provide input for business plan development and feedback on future retrofitting plans as well as on barrier removal for DHS. This report is created as country-by-country overview of organized local working group meetings with the aim of presenting systematic and continuous activities of KeepWarm partners toward DHSs representatives and other stakeholders with the aim of achieving investments. In addition to this, each project partner used a tailor-made KeepWarm approach which is a result of previously taken activities such as feasibility studies, business plans and selection of DHSs to be retrofitted. In case of Serbia, project partner VINČA organized eight meetings on different topics with respective DHSs representatives, on local (hereinafter meetings 3, 4, 6 & 7) , regional (hereinafter meeting 8) and national level (hereinafter meetings 1, 2 & 5). which were attended by 90 participants. In each initial meeting with DHSs (meetings 3, 4, 6 & 7), feasibility studies created through the project have been presented, as well as discussed in terms of modifications and further steps. Meetings taken afterwards have been
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